With oil prices approaching $70/brl, coupled with hurricane season, I decided to do a screen in The PPT for cheap oil companies. This screen includes:
- Industry: Oil & Gas Equipment Services
- Fundamental Score above 3 (A PPT buy rating)
- P/E Ratio below 10
- And, positive earnings growth for the quarter.
I was pleased with my results as a lot of the stocks in the screen produced favorable technical patterns. I will start by listing my results, then I will display two charts that are near imminent breakouts. A lot of these stocks are still trading as if oil was below $50/brl. I will be doing more work on the entire sector in the coming weeks.
Screen results: PDS, TRMA, WRES, SPN, SWSI, WEL, OIS, CGV,NR, SII, DVR, TESO, WG, NOV, LUFK, CRR, & WFT
Trico Marine Services Inc [[TRMA]] is on the top of my watchlist, now trading @ 3.58/share compared to it’s high last may of $43.42. The company has a P/E ratio below 1 and estimated quarterly earnings growth above 100.
But, the thing that really gets me excited about the stock here is its technical setup. TRMA’s chart is a perfect example of what I screen for on a daily basis. We are looking for moving averages to line up together with a little consolidation in price, this is the recipe for a “BTFO stock”:
Warren Resources, Inc. [[WRES]] also looks great here, a move above the 200 day moving average should give this stock the boost it needs to also break out of this triangle pattern:
As always, find more analysis & screens inside The PPT.
If you enjoy the content at iBankCoin, please follow us on Twitter
Find expanded charts on my Chart.ly page. Click chart within link:
TRMA is a real good example to study, this is what I look for on a daily basis: http://chart.ly/era69p
WRES: http://chart.ly/kwnged
SD also looks good: http://chart.ly/5ed4yz
RC,
Thanks!
Can you make the charts get bigger when we click on them so I can see better?
OK got it. But from your perspective, when did consolidation began, how long did it have to occur and how long do ma’s have to line up for it to be a buy. Can you give me a more detailed idea of your thinking, so it becomes more intuitive for me as I’m guessing it is for you?
Hawaii,
I’m having issue expanding charts in iBC, click chart.ly link once you see chart, click on it for expandable size.
As far as the MAs & consolidation goes, there is no set standard and no guarantee for a breakout. These are just things I look for to give myself a higher probability for a move higher.
In the TRMA example, the consolidation I am speaking of is the last few days. Notice price could not get above 3.60, in the event it breaks that resistance point, it is a buy. AND, the best part about it is you have 4 levels of support from all your moving averages that are positioned right underneath it.
In the near future, I will be doing a chart setup video series inside The PPT, I’ll let you know when it’s ready.
Great!!!
Thanks for explanation. Didn’t know about multiple levels of support.
I’m an old guy, but new at this. Took over on my own just recently after MS lost about half my portfolio.
Appreciate you work!!!
Top Stocks & Industries via The PPT: http://sectorstockcharts.googlepages.com/ibankcoin
PE below 1 and quarterly earning growth of 100%??! C’mon RC, you don’t think that’s a little misleading? I’m a big fan of yours and i agree the technicals on this are very nice but don’t think you may be over simplifying the fundamentals story on this one? i think if you post those kind of PE numbers you have to explain a little better than that….
Rocketman,
I’m just stating results I found from my screen. Am I simplifying the fundamentals? Possibly. The reason for the trade is based solely on a technical pattern. Sorry if I painted the picture too bright.
If it’s technicals you seek, it’s the charts you must peek.
Fundamental analysis just allows RC to feel comfortable about the company being in a solid position so he doesn’t have to deal with a random volatility swing if the technicals look solid and the company as a whole does not.
Am I correct in stating that?
indeud.
You might want to run your screen with P/NAV instead of PE
700 million dollars of debt on a 60 million dollar market cap?
Thanks RC
I never saw Chart.ly before. Nice to learn something new every day.
RC,
Thanks for this post on oil stocks.
Did GTE come up on any of your screens? It’s chart looks good, too.
Miss the PPT. Can’t until I can rejoin.
Also, is any one else having trouble submitting comments on their BlackBerry? My comments won’t go through unless I am on a computer. The SPAM protection feature?